An Empirical Study on Identification of Turbulence in National Stock Exchange of India and its Reduction during the Last Two Decades

Abstract

The Nifty 50 data from the period of 2005 to 2025, to understand the turbulence analogy as given in fluid dynamics has been undertaken in this study. The study looks into the dynamics of stock return displayed with statistical characters similar to turbulent flows of liquid in Physical science. The scaling in this study has been done using the notions of ecnophysics with emphasis on intermittency and multifractality. The power spectral density analysis, determine fluctuation analysis comparing scaling exponents and long range dependency. The findings revels a fat-tailed distribution and volatility clustering. Besides the study explores channels through which turbulence can be alleviated in financial markets. This study aims to provide insights for turbulence alleviation strategies in the financial markets especially the Indian stock market.